Subject:
Title
Payment request related to Lealman Community Redevelopment Area Home Investment Program contract with Habitat for Humanity.
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the payment request related to Lealman Community Redevelopment Area (CRA) Home Investment Program (HIP) contract. This grant program is included on the Fiscal Year 2023 Lealman Work Plan approved by the Board of County Commissioners sitting as the Community Redevelopment Agency (Agency) during their regular meeting on September 22, 2022. A copy of the Work Plan is included as an attachment to this item.
• The HIP allows for construction of single-family homes for residents earning less than 120% of Area Median Income (AMI). Habitat can receive up to $55,000.00 in subsidy through a variety of fees described in the Agreement for each new single-family home built to offset land acquisition and hard construction costs.
• The property in question was conveyed to Habitat by the County, enabling Habitat to receive a $15,000.00 Hard Construction Cost Fee under the terms of the Agreement.
• Habitat is eligible to receive the applicable fee(s) once the home is constructed and the homeowner closes on the home. This is the second home closing under the Agreement; however, Habitat has twelve additional homes under construction that are anticipated to close in or before June.
• The Agreement was approved by Agency on March 8, 2022, with a total value of $1,500,000 over three years, with a $500,000 annual cap each year.
• Appropriation for the $15,000.00 is consistent with and included in the FY23 Adopted Budget.
Strategic Plan:
Ensure Public Health Safety and Welfare
2.2 Be a facilitator, convener, and purchaser of services for those in need.
Foster Continual Economic Growth and Vitality
4.2 Invest in communities that need the most
Deliver First Class Services to the Public and Our Customers
5.3 Ensure effective and efficient delivery of county services and support
Summary:
The HIP is intended to support infill housing in the CRA to encourage new construction reinvestment in existing neighborhoods and promote homeownership. The term of Habitat’s contract is 3 years with a maximum funding level of $500,000 per year for a total not to exceed of $1.5 million over the duration of the contract. Habitat will be incentivized to construct new, affordable single-family homes through three different fees: a Hard Construction Cost Fee (HCCF) of $ 15,000 to off-set hard construction costs associated with each single-family home developed, a Lien Land Acquisition Fee (LLAF) of up to $40,000 or the appraised value, whichever is less, to off-set land acquisition costs of properties identified that are heavily liened and significantly blighted, abandoned or vacant, and a Land Acquisition Fee (LAF) of up to $25,000 or the appraised value, whichever is less, to off-set land acquisition costs for non-liened properties located within the CRA. Habitat will be conveyed five county owned parcels that were included in the Letter of Interest process. For these five properties Habitat will only be eligible for the HCCF. For parcels acquired through its own means Habitat will be eligible for the HCCF and the LLAF or the LAF, depending on the lien status of the property acquired. Habitat would be able to access up to $1,500,000.00 over the three-year term of this Agreement and staff forecasts this funding would result in approximately 35 new single-family homes sold to residents earning less than 120% of AMI depending on the number of liened and non-liened parcels redeveloped.
Background/Explanation:
This grant program is included on the FY23 Lealman Work Plan, approved by the Board of County Commissioners sitting as the Community Redevelopment Agency during their regular meeting on September 22, 2022.
The HIP is intended to support infill housing in the CRA to encourage new construction reinvestment in existing neighborhoods and promote homeownership. The term of Habitat’s contract is 3 years with a maximum funding level of $500,000 per year for a total not to exceed of $1.5 million over the duration of the contract. Habitat will be incentivized to construct new, affordable single-family homes through three different fees: a Hard Construction Cost Fee (HCCF) of $ 15,000 to off-set hard construction costs associated with each single-family home developed, a Lien Land Acquisition Fee
(LLAF) of up to $40,000 or the appraised value, whichever is less, to off-set land acquisition costs of properties identified that are heavily liened and significantly blighted, abandoned or vacant, and a Land Acquisition Fee (LAF) of up to $25,000 or the appraised value, whichever is less, to off-set land acquisition costs for non-liened properties located within the CRA. Habitat will be conveyed five county owned parcels that were included in the Letter of Interest process. For these five properties Habitat will only be eligible for the HCCF. For parcels acquired through its own means Habitat will be eligible for the HCCF and the LLAF or the LAF, depending on the lien status of the property acquired. Habitat would be able to access up to $1,500,000.00 over the three-year term of this Agreement and staff forecasts this funding would result in approximately 35 new single-family homes sold to residents earning less than 120% of AMI depending on the number of liened and non-liened parcels redeveloped.
Fiscal Impact:
Approval of the payment request would reduce the Lealman Redevelopment Area Trust Fund balance by $15,000.00 for the Countywide portion of the TIF. Appropriation for the $15,000.00 is consistent with and included in the FY23 Adopted Budget.
Delegated Authority:
Authority for the County Administrator to sign these Grant Agreements is granted via the Agency’s approval of the FY23 Lealman Work Plan.
Staff Member Responsible:
Christopher D. Moore, Assistant to the County Administrator, Lealman Community
Partners:
Lealman CRA Advisory Committee
Lealman residents, businesses, stakeholders, and community partners
Attachments:
Lealman CRA Plan
Resolution 19-10 granting County Administrator delegated authority on behalf of Community Redevelopment Agency
FY23 Lealman CRA Workplan
Habitat for Humanity Agreement
3167 70th Ave N Reimbursement Package